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Yes I agree fortissimo,May will be a clue to which way it's going imho
DM, no need to be defensive as wasn't being critical. I think the thread or question on MD&A was started by Orphencopper who in his normal drum way said "There is sod all they can discuss and analyse with all operations shut down… Wondering what it can possibly say" END.
Most of us know what it will say... that was my point. A non event. BoA Metals conference around May 18th more likely to see a new presentation assuming we are presenting there again this year. If we are not presenting... then it does suggest the end game (sale/deal) is very near.
Thanks dm
The upcoming MD&A (mid MAY) covers quarterly financial period ended 31 March 2023. So any events from Jan 1st through to March 31st. So they'll cover off completion of merger and delisting etc, issuing of shares blah blah blah. Prob some ongoing field studies, rock chip samples blah blah blah. And of course some further studies on Alpala. Pretty much all of it is already outlined or forecast in the last MD&A. So I can't see any surprises and MD&A more a formality for market regs than an update.
If multiple NDA's have been signed and they are in discussions with buyers or partners etc, none of it has to be disclosed (unless they want to) as the discussions likely to be by 3rd party eg Maxit and as such may not involve 'management' discussion' until Maxit have presented their workings or progress update to the BoD's.
So I doubt the MD&A reveal anything other than what we already know.
The MD&A for April 1st through to June 30th will be the one to watch assuming we have had zero news. I doubt the latter, but pressure to deliver will be building toward June for sure.
Market backdrop looks set to improve from H2 onwards as inflation dips and rate rises slow or end. PM's should be doing well as globe gets back to growing GDP after contractions and post covid woes.
Anything on Ecuador Gov or mining discussions will likely be released before MD&A if meaningful otherwise if continued talks etc, then it will say just that.
Would be good to see Ecuador & Chinese sign FTD in next few weeks or couple of months etc.I just get the feeling that we might be held back (hands tied) until that landmark and historic globally significant deal is officially pen'd.
DM yes they'd made that mistake before with sedar,sorted now I guess
Well I can't see any sort of consolidation tbh the company is drawing to a close ,they not going to do anymore fundraising imho ,well done addicknt with thg ,was in and out with that one as I also felt it would disappoint hey ho move on ,let's hope this gets sold soon to the benefit of all invested
Well done with THG addicknt, I had a little bit of luck with SUR, first time ever I have woken up to Takeover RNS, hoping this won't be the last one either......
That all sounds fine with me Add but I'm pretty sure they won't do it.
IMO, for everyone to get a 50p special div on Cascabel, ENSA would have to sell for at least £2bn.
Besides, how do you feel this ENSA sale option sits with the current skeleton company structure and mass reduction of headcount by caldwell?
Good luck with THG. One I've had a couple of dabbles with in recent months but completely missed the recent updates.
Glad someone made some money on THG this week add, one of my closest friends sold his entire 270k stake the Friday before as he ( correctly ) forecast the results would dissapoint! ... just didn't see the takeover panel intervention coming I guess! Funnily enough I might see Matt Moulding in the gym this morning as he's a Sunday morning regular.
Fort sums up my opinion on Fridays rns, the optics of putting this news out last thing on Friday are terrible and tell you everything you need to know. 'Fast and smart' Bob... remember - get the hell on with it! C
Morning addicknt, congrats on THG, nice little earner. I mentioned UPL months ago, look at their performance over the last 6 months. There's still plenty to go there ;-)
I'm not ramping, just an honest opinion.
Leave 50m in the plc, raise another 25m and a 100 for 1 consolidation. The option beneficiaries will then really have to earn their keep to create value over the coming years. Of course, there's the 'minor' issue of the royalty debt, which I guess will go with Cascabel, thus reducing the amount a buyer will pay.
The truth is I don't have a scoobie which will way this will go - none of us do. Each possible route has advantages and disadvantages and perhaps the cleanest and best option is simply to sell the whole thing, although we'll get the square root of fa for the regionals.
In the meantime my attention has been focussed on THG. For the first time in ages, last Monday I decided to have a punt and took advantage of the strange delay in the market reaction to the weekend press commentary. I think there was about an hour delay between the market opening and the significant price rise, which created a nice opportunity for private punters. As far as corporate shenanigans go, THG takes some beating.
Morning dm. Trust your having a good weekend.
Ive just caught up with your Friday post.
." It is incorrect to state all operations shut down. As far as I'm aware, there is still exploration/prioritisation taking place, just not drilling anywhere other than ENSA. Although a regional drilling programme is 'planned' for H1."
I must of missed something mate, not being the brightest. Is it possible to post a link on here, appertaining to this.
Thanks in advance
Will they really do that with a prospective regional portfolio to fund? Unlikely IMO.
It also doesn't give optionholders much scope to exercise given where the SOLG SP would be ex-div.
So, I'm not sure it would satisfy everyone. It would give everyone a little kicker but everyone would be well underwater on their stock.
Divi out the proceeds, or most of them. This should satisfy everyone.
So with a sale of ENSA you're relying on the market valuing SolGold at the consideration amount.
I'm not sure this option gives us the exit point you think it might. The stock would spike and stale bulls would fight each other for the exit.
It also does nothing to help our Cornerstone investors now holding SOLG in size.
Bozi, they'd sell the subsidiary and leave the regionals in the plc. A standard transaction. The value of Cascabel will be negotiated and as Mather has said, it'll be valued on the asset not the sp...Hopefully.
Fort - there are many reasons to think that a take out price might be 35-40p and the pricing of the Stackhouse options is further evidence to support it.
Ask yourself why those options weren't priced at a fair price based on the SP during the last 12 months? Say 30p? Because it significantly eats into his earning potential on those options.
Conversely, do you think these options mean a quick 4/5/6 bag for Stackhouse were the company taken out at 100-140p? Doesn't feel likely does it.
There's nothing stopping SOLG price the Stackhouse options at 30p by the way. It might encourage him to buy some down here on the open market, but that's not the ideal way is it... best to have no risk.
Add - correct me by all means but the usual modus operandi is for the target company to be acquired rather than the licences.
Your suggestion also relies on the market sufficiently re-rating SOLG plc stock to reflect a purchase of the asset. I'm not convinced that would happen. There have been numerous examples in the past where companies have traded below cash for example and I would speculate the same would happen with SOLG if Cascabel was sold.
By granting options in the plc, everyone gets their win if we get the news we hope for. Everyone can sell their stock to an acquirer of the plc and exercise those options before moving onto a completely new she'll company where, you guessed it, everything starts again.
Your point around the accumulated losses is a fair one mind.
DM your right
Ffs that was well buried!
Dm. I think your 3rd paragraph answers your second
How can anyone assume that the takeout price is 35p to 40p based on SOLG issuing the CFO options at 22p average?
That's nonsense.
If you look at the average placing price over the last few years to pi's and ii's), it ranges from 21p through to 26p. Forget BHP's 45p and Valuestone's 32p issues. So on average basis, I think the CFO options are fair, inline with what has been given to II's and PI's in the past and as such all treated fairly. Scott's 30m at 17p is the laughable one. But issuing an RNS at 6pm+ on a Friday eve is far worse than both. It's an admission of embarrassment... an admission that they would like to sneak that kind f news through and an admission that they know PI's and II's are about to jump down their necks big time if they do not deliver some decent news or progress update pronto.
We had the RNS on Scott some weeks ago and that intimated performance criteria updates coming at some point. Where are they? It was signalled then that more options to 'staff' would be issued. So all in all, news not surprising, 6m at 22p reasonable and takeover price remains exactly as it was before options issues... based on the Asset and in ground industry prices.
Management rarely price options at significant premium to the sp when in the stages of potentially flogging the business. Of course they will seize the opportunity to capitalise on the self induced low sp. By design... it suits them. But I guess the question is this.... is that it? Is that the last of the feather nesting? Can we now get on with it and reveal all now everyone on inside is nicely positioned??
Bluudy hope so!
Bozi, I'm not sure I can see the point of spinning out the regionals and selling SOLG as an entity. Why not simply sell Cascabel and keep the regionals under the SOLG entity? If this is what they're thinking it would offer another explanation of why options are being granted in the plc. It would also avoid the hassle of establishing another plc and would keep the accumulated losses on the balance sheet, which will helpful for the future.
Bozi/DM. That was my take too. I've thought for a while now that the strategy is to come to an agreed price with the Chinese, who were let in relatively cheap not too long ago, hopefully with the understanding that they would tender some sort of offer. Once that offer is made public - around the numbers you suggest - we have to wait and see whether anyone comes out of the woodwork and counters.